Some great posts here, here, and a comment from the wasserblawg regarding that ever moving target that is FHA insured financing. It seems times they are a-changin’ both in Springfield and Washington on this issue.
First, down at the General Assembly while they haven’t been passing a budget, both the House and Senate have approved HB0155 regarding condominium associations exercising their right of first refusal. It’s awaiting action from the Governor. Here’s a synopsis of the bill:
Amends the Condominium Property Act. Provides that in the event of a sale of a condominium unit by a unit owner, no condominium association shall exercise any right of refusal, option to purchase, or right to disapprove the sale, on the basis of the type of financing used by the purchaser.
Sadly, my analysis of this bill is that it’s worthless. Why? The reality is that condo associations NEVER exercise their rights of first refusal even if the most disagreeable potential buyer were set to move in or surely based on financing type. Why? What association wants to spend a few hundred thousand dollars to own a unit that provides no benefit to the general membership? Never happens!
The FHA mortgage letter seems like more of a mixed bag…looking negative in the short -term but good longer-term for condo buyers/sellers & associations. Take a look at Mike’s post for the nitty-gritty but my opinion is based on the elimination of the individual unit FHA “spot” approvals will surely hinder some buyers in the near-term. BUT, the elimination of the right of first refusal restrictions is a big positive going forward for buildings/associations who are on the ball and get their buildings/projects FHA approved.
No comments yet.